Diesel prices are crashing due to Brent crude based on recession fears, Chairman of Independent policy think tank, Advocata Institute, Murtaza Jafferjee has pointed out.
Murtaza Jafferjee said, therefore, that Sri Lanka must ensure that the new shipments of fuel are purchased at lower prices.
He further said that no excessive premiums should be paid for new shipments, adding that shipments of 40,000 MT of diesel should be below US$ 50 million.
Meanwhile, opposition MP Dr. Harsha de Silva said there are reports of numerous ‘local agents’ crawling out of the woodwork for ‘emergency fuel procurements’.
He revealed that as oil prices are crashing Sri Lanka is agreeing to pay crazy prices for the purchase of fuel.
Apart from the payment, Sri Lanka is also paying an additional Rs. 700 million in ‘commissions’ per shipment of 40,000 MT to crooks and thieves, MP Harsha de Silva said.
Oil prices tumbled Tuesday with the U.S. benchmark falling below $100 as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products.
West Texas Intermediate crude, the U.S. oil benchmark, slid 8.4%, or $9.14, to trade at $99.29 per barrel. The contract last traded under $100 on May 11.
International benchmark Brent crude shed 9.1%, or $10.34, to trade at $103.16 per barrel Tuesday.
Oil was pressured in a low liquidity session on Tuesday as equities fell and the dollar surged, making commodities priced in the currency less attractive. (NewsWire)
